Disaster: Philly Fed Report Collapses to -16.6

The Philadelphia Fed Manufacturing Report is one of the most widely-watched regional Fed economic surveys there is.

-snip-

analysts are expecting a 0.0 reading, which would actually be an improvement from the -5.8 reading from May.

Then the update:

The number is out and it’s very bad.

A reading of -16.6 is WAY below the expected 0.0 reading, and it’s well below the -5.5 number.

Not good.

Here’s the rull report

Manufacturing firms responding to the Business Outlook Survey indicated weaker business conditions this month. The survey’s diffusion index of current activity fell to -16.6 from a reading of -5.8 in May, its second consecutive negative reading. The survey’s indicators of future activity remained positive and improved slightly.

Indicators for new orders, shipments, and average work hours were also negative this month, suggesting overall declines in business. Indexes for current unfilled orders and delivery times both registered negative readings again this month, suggesting lower levels of unfilled orders and faster deliveries.